Keppel eyes 'alpha returns' in riding sustainability megatrend

The asset manager believes in doing good for the environment without having to compromise returns.

- By Sharanya Pillai

Keppel's Living Well initiative provides vulnerable communities in Vietnam and India with access to clean water.

(KEPPEL)

Keppel's big push on sustainability isn't just about doing good, but also about generating "alpha returns" for investors, said its chief executive Loh Chin Hua.

Once the world's largest offshore rig builder, Keppel has transformed into an asset manager and operator going big on sustainability, from renewable energy to green buildings and data centres.

It has also set ambitious green targets, such as increasing its portfolio of renewable energy assets to 7 gigawatts (GW) by 2030. By 2050, the company aims to hit net zero on Scope 1 and 2 emissions, which arise from direct operations and power consumption, respectively.

"Everyone wants to do good. But if you can do well in the process as well, then I think it becomes even more compelling," Loh tells The Business Times in an interview.

"For (those who) invest with us, they know that they can do good for the planet, do good for the environment, but without sacrificing returns. In fact, in the process, we are able to generate alpha returns, which they find appealing," he said.

Keppel was recognised as the Impact Enterprise of The Year under the large enterprise category at the 2025 Sustainability Impact Awards, jointly presented by BT and UOB.

Loh sees sustainability as a "megatrend that's going to be with us for many decades", given the reality of climate change. "Despite some pulling back in some quarters, we still believe that this is still a very important thing that the world has to confront," he said.

GREEN ENERGY IMPORTS

Keppel's renewables portfolio stands at 3.8 GW, including projects under development, as at end-2024 more than half the 7 GW target. Even in the challenging landscape for green energy, the company remains steadfast in expanding its footprint.